Equity Method Accounting for Common Stock of OncoCyte, at Fair Value

6 Months Ended

Jun. 30, 2019

Deconsolidation Of Subsidiaries

Equity Method Accounting for Common Stock of OncoCyte, at Fair Value

4. Equity Method Accounting for Common Stock of OncoCyte, at Fair Value

BioTime elected to account for its 14.7 million shares of OncoCyte common stock at fair value using the equity method of accounting beginning on February 17, 2017, the date of the OncoCyte Deconsolidation. The OncoCyte shares had a fair value of $36.5 million as of June 30, 2019 and a fair value of $20.3 million as of December 31, 2018, based on the closing price of OncoCyte of $2.49 per share and $1.38 per share on those respective dates.

For the three months ended June 30, 2019, BioTime recorded an unrealized loss of $21.4 million due to the decrease in OncoCyte’s stock price from $3.95 per share at March 31, 2019 to $2.49 per share at June 30, 2019. For the three months ended June 30, 2018, BioTime recorded an unrealized gain of $6.6 million due to the increase in OncoCyte’s stock price from $2.10 per share at March 31, 2018 to $2.55 per share at June 30, 2018.

For the six months ended June 30, 2019, BioTime recorded an unrealized gain of $16.3 million due to the increase in OncoCyte’s stock price from $1.38 per share at December 31, 2018 to $2.49 per share at June 30, 2019. For the six months ended June 30, 2018, BioTime recorded an unrealized loss of $30.8 million due to the decrease in OncoCyte’s stock price from $4.65 per share at December 31, 2017 to $2.55 per share at June 30, 2018.

All share prices are determined based on the closing price of OncoCyte common stock on the NYSE American on the applicable dates, or the last day of trading of the applicable quarter, if the last day of a quarter fell on a weekend.

OncoCyte’s unaudited condensed results of operations for the periods presented are summarized below (in thousands):

	Three Months Ended June 30, (unaudited)						Six Months Ended June 30, (unaudited)
	2019			2018			2019			2018
Condensed Statement of Operations:
Research and development expense	$	1,508		$	2,322		$	2,851		$	3,784
General and administrative expense		3,636			1,335			6,085			3,122
Sales and marketing expense		318			569			523			1,227
Loss from operations		(5,462	)		(4,226	)		(9,459	)		(8,133	)
Net loss	$	(5,384	)	$	(4,505	)	$	(9,248	)	$	(8,284	)